The creation of the ASEAN Economic Community (AEC) in December 2015 will unite the ten members of the ASEAN into a single market and production base. This will thrust Southeast Asia into the spotlight, attracting greater attention from multinationals which have so far been drawn mainly to China and India. Poised to become a global economic powerhouse thanks to its expected strong future economic performance, the AEC also has real potential of becoming a vast market with predominantly young, dynamic and increasingly affluent consumers, in contrast to ageing China and Japan, the company said.
“If the ASEAN was a single economy, it would be the 7th largest in the world with total GDP of US$2.5 trillion in 2014, and Euromonitor International forecasts that by 2030 it could become the third largest economy behind only the USA and China,”observed An Hodgson, Income and Expenditure Manager at Euromonitor International.
“Currently, the ASEAN market holds more than 622 million consumers and a total consumer expenditure of US$ 1.5 trillion in 2014, which offers unique opportunities across the region and by country.”
The ASEAN consumer market is expected to expand rapidly, with total consumer expenditure forecast to grow by 105% in real terms between 2015 and 2030 – equivalent to an average annual real growth of 4.9% in real terms. By 2030, the ASEAN will be a market worth US$3.1 trillion in constant 2014 prices.
The ASEAN consumer market is expected to expand rapidly, with total consumer expenditure forecast to grow by 105% in real terms between 2015 and 2030 – equivalent to an average annual real growth of 4.9% in real terms. By 2030, the ASEAN will be a market worth US$3.1 trillion in constant 2014 prices.
In 2014, an average Singaporean household spent US$72,421, compared to only US$3,398 in Myanmar. However, those ASEAN countries with lower average household spending such as Vietnam, Laos and Cambodia are expected to record some of the strongest growth in total consumer expenditure through to 2030 due to rapid economic growth, increasing trade and investment and rising disposable incomes, Euromonitor believes.
“The ASEAN has excited consumer goods businesses not only with its exceptionally fast pace of economic development over the past decades, but also and more importantly because of its long-term potential as a collectively youthful and dynamic consumer market,” concludes Hodgson. “Southeast Asia is entering a new era and the commencement of the AEC at the end of 2015 will be the start of an exciting journey ahead.”
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“The ASEAN has excited consumer goods businesses not only with its exceptionally fast pace of economic development over the past decades, but also and more importantly because of its long-term potential as a collectively youthful and dynamic consumer market,” concludes Hodgson. “Southeast Asia is entering a new era and the commencement of the AEC at the end of 2015 will be the start of an exciting journey ahead.”
Interested?
Download the white paper
